207 ANNUAL REPORT 2022 24. Capital management The Group and the Fund manage their capital to ensure that the Group and the Fund will be able to continue as going concern while maximising the return to unitholders through the optimisation of the debt and equity balance. The Group’s and the Fund’s overall strategy remain unchanged from 2018. The capital structure of the Group and the Fund consist of net debt (Islamic financing as detailed in Note 17) offset by cash and cash equivalents in Note 14 and unitholders’ fund of the Fund (Note 18) (comprising unitholders’ capital and undistributed income). The Group and the Fund are not subject to any externally imposed capital requirements. However, the Group and the Fund are required to comply with the SC Guidelines on borrowings. The SC Guidelines requires that the total borrowings of the Group and the Fund (including Islamic financing through issuance of debt securities) should not exceed 60% of the total asset value of the Group and the Fund at the time the borrowings are incurred. Notwithstanding, the Group’s and the Fund’s total borrowings may exceed this limit with the sanction of the unitholders by way of an ordinary resolution. The Manager’s risk management committee reviews the capital structure of the Group and of the Fund on a regular basis to ensure that the SC Guidelines are complied with. Gearing ratios The Group’s and the Fund’s gearing ratios are calculated based on the proportion of total Islamic financing to the total asset value. The gearing ratios at the end of the reporting period is as follows: Group Fund 2022 RM 2021 RM 2022 RM 2021 RM Total Islamic financing (Note 17) 637,270,302 635,656,938 187,062,422 186,669,178 Amount due to a subsidiary - - 445,968,601 444,679,509 637,270,302 635,656,938 633,031,023 631,348,687 Total assets value as per statements of financial position 1,305,113,737 1,253,499,726 1,299,429,685 1,247,899,643 Total Islamic financing total assets value ratio 48.8% 50.7% 48.7% 50.6% 25. Commitments The Group and the Fund lease out their investment properties under operating leases. The future minimum lease payments to be received under non-cancellable leases are as follows: Group Fund 2022 RM 2021 RM 2022 RM 2021 RM Less than one year 36,747,530 36,381,092 36,747,530 36,381,092 Between one and five years 188,559,606 186,933,090 188,559,606 186,933,090 More than five years 374,390,110 412,764,157 374,390,110 412,764,157 599,697,247 635,930,139 599,697,247 635,930,139
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